Trust Deeds UK

Trust Deeds UK:
Advice and Recommended Debt Specialists

Go Straight To The List Of
Recommended Providers of Trust Deeds

IVAs - Individual Voluntary Arrangements
(for residents of England, Wales and Northern Ireland)

Debt Management Plans For Scotland

Trust Deeds UK - Debt Solution For Scotland

The UK has some special arrangements to help people struggling with serious debt problems. In England, Wales and Northern Ireland there are Individual Voluntary Arrangements, known as IVAs, and in Scotland the equivalent debt solutions are Protected Trust Deeds.

Trust deeds are formal and legally binding arrangements, which allow you to make regular payments towards your debts for a fixed period of time. At the end of the period any remaining debts are written off and you are debt free again. One of the advantages of UK trust deeds compared to debt management plans is that you only need two thirds of your creditors to agree to it for it to become binding on the others.

This can be very useful if you have one of two creditors who are unwilling to co-operate with your efforts to tackle your debt. If you were trying to set up a debt management plan, which is an informal arrangement, you would not be able to include any creditors who did not agree to it. With trust deeds any such creditors would be legally obliged to take part, provided that creditors for at least two thirds of your debts agreed. The two thirds relates to the monetary value of your debt, not the number of creditors. For a single creditor to prevent you setting up a trust deed they would have to be owed over a third of your entire debt.

A trustee will be appointed to arrange your trust deed, and they will have to prepare a proposal to put to your creditors for approval. Registering the deed as a Protected Trust Deed gives you extra protection by making it impossible for your creditors to sue you to reclaim their debt. The protection also ensures that interest rates are frozen at the rates applied at the time the deed is set up.

In the UK, Trust deeds and IVAs are intended as alternatives to bankruptcy, providing a less drastic way to get out of serious debt. One of the main concerns about bankruptcy (sequestration in Scotland) is that you immediately lose control over all your assets, including your home. When you are declared bankrupt your home is often sold to repay your creditors. With trust deeds you should not lose your home, though the value of your home will be taken into account and if you have equity in it this may need to be released.

Trust Deeds UK - Advantages Of A Protected Trust Deed In Scotland

You only have to make payments that are within your means and you know that after a fixed period your remaining debts will be written off.

You no longer get chased by your creditors as they have to deal with the Trustee, and by law they are not allowed to pursue you or take legal action against you. All correspondence and communications with creditors must be through your Trustee.

Trust deeds in the UK cost less than bankruptcy (sequestration in Scotland).

Unlike with bankruptcy, you are not restricted from holding certain offices or being a company director. Business owners and the self employed can carry on with their work.

Unlike with bankruptcy, trust deeds are private and not published in the press. Much of the stigma that comes with bankruptcy is therefore avoided.

Trust deeds last for a maximum of three years, and often less. This is two years less than most IVAs and no longer than many debt management plans.

Trust Deeds UK - Factors To Bear In Mind

You should remember that trust deeds are legal agreements and while there are advantages to you in this, it also means that it is very important that you keep up with your end of the bargain by paying the agreed amount each month. Failure to do this can still lead to sequestration.

You are not allowed to borrow any more money or take on any additional credit during the term of the deed.

If you receive any additional income or financial windfall you must tell your Trustee about it and you may be required to put it towards your debts. If you think your circumstances are likely to change, you may be better off with an informal agreement such as a debt management plan, which you can end at any time.

Are My Creditors Likely To Agree To A Trust Deed?

For your creditors, accepting a trust deed means accepting the fact that they are unlikely to get all their money back. On the face of it you would think they were unlikely to be attracted to that idea, but it could actually be the best option for them too. What they want is to get back as much of what you owe as possible. The costs of recovering a debt can be very high, and they need to weigh up what they might get through a trust deed against the chances of you going into sequestration and them perhaps ending up with nothing.

Provided that it can be demonstrated that you are in genuine hardship and really cannot afford to pay them back the full amount, they are quite likely to accept a trust deed, or other debt solution, that will give them something back rather than risk getting nothing.

Trust Deeds UK - Recommended Providers

As with any service or purchase, it pays to shop around and be careful about who you deal with. You should try to apply to more than one company so that you can compare any offers you receive. You also need to take care to ensure that you only deal with reputable debt companies. The following company is a reliable one that you can apply to quickly and easily online.

Trust Deeds UK Top Recommendation: 123DebtSolutions

This company have years of experience helping UK residents to eliminate debt through a range of solutions including Trust Deeds for residents of Scotland and IVAs for people in the rest of the UK.

To see if you can get a Trust Deed set up, just complete the simple online form and they will get straight back in touch with you to discuss your situation. Do not worry that the form says IVAs rather than Trust Deeds, as they do both.

Protected Trust Deed Scotland

Trust Deeds UK:Advice and Recommended Debt Specialists

Go Straight To The List OfRecommended Providers of Trust Deeds

See Also:

IVAs - Individual Voluntary Arrangements(for residents of England, Wales and Northern Ireland)